APA has made a detailed review of the 2012 Budget and its potential effect on PAs, their families and their businesses. The following highlights were identified from a fairly unimaginative and lack lustre budget.
Twenty-three million workers to be £346 a year better off as income tax threshold rises to £9,200. Personal allowance to rise to £9,205 from April 2013 and £10,000 in 2014. The biggest losers appear to be current and future pensioners who will see there tax benefit brought inline with workers and there gain less advantage.
In total, from April next year the average worker earning under £100,000 will save £179 a year. By 2014 they will save £250 a year.
There is some child benefit advantage for families, especially where both partners work, with the removal of the reported cliff-edge in favour of a staggered reduction in allowance. This will disadvantage higher earning single parents and may hurt London-based PAs.
The Budget did contain some incentives for developers of low-cost housing which could hep young first time house purchasing PAs. Investment in the infrastructure, especially in London
The tax reductions have been brought in a year earlier than planned after pressure from the Liberal Democrats keen to show that they are helping low and middle income earners.
Raising the personal allowance will cost the Treasury around £3bn a year. But Mr Osborne said today that the savings would be made elsewhere.
APA recognises that there is very little room for the coalition to move in its efforts to reflate the economy but the moves proposed were thought to be as creative as they could be; given the lack of resources and the need to generate more.
APA will be responding to the Chancellor’s call for comments and reinforcie its call for additional actions for families, home working and equality of pay.
Members can read more and see APAs comments by going to the Knowledge Zone, News Section of the APA Website.
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